Continuous PNAD: unemployment rate is 13.3% and underutilization rate, 29.1% in quarter ended in June 2020

Section: Social Statistics | Cristiane Crelier

August 06, 2020 09h00 AM | Last Updated: August 07, 2020 04h10 PM

The unemployment rate (13.3%) rose 1.1 percentage points in the moving quarter from April to June 2020 in relation to the quarter between January and March 2020 (12.2%) and 1.3 percentage points over the same moving quarter last year (12.0%).

Indicator/Period Apr-May-Jun 2020 Jan-Feb-Mar 2020 Apr-May-Jun 2019
Unemployment rate 13.3% 12.2% 12.0%
Underutilization rate 29.1% 24.4% 24.8%
Usual real earnings R$2,500 R$2,389 R$2,339
Change of the usual real earnings in relation to: 4.6% 6.9%

The unemployed population (12.8 million persons) remained stable compared with the quarter from January to March 2020 (12.9 million persons) and also with the same quarter a year ago (12.8 million persons).

The employed population (83.3 million persons) reached its lowest level in the time series started in 2012, with a reduction of 9.6% (less 8.9 million persons) in relation to the previous quarter and of 10.7% compared with the same quarter of 2019 (less 10.0 million persons). Once again, both drops were a record in the time series.

The employment-population ratio – percentage of employed persons at working age – dropped 5.6 percentage points against the previous quarter (53.5%), hitting 47.9% in the quarter between April and June 2020, the lowest level in the time series. The drop was of 6.7 p.p. against the same quarter last year (54.6%).

Having risen 4.8 p.p. over the previous quarter (24.4%) and 4.3 p.p. over 2019 (24.8%), the composite underutilization rate (29.1%) was a record in the time series.

The underutilized population (31.9 million persons) was one more record in the time series, increasing 15.7% (more 4.3 million persons) against the previous quarter (27.6 million) and 12.5% (more 3.5 million persons) against the same period of 2019 (28.4 million).

The population out of the workforce (77.8 million persons) hit the largest contingent in the time series and had a record growth in both comparisons: 15.6% (more 10.5 million persons) over the previous quarter and 20.1% (more 13.0 million persons) in relation to the same quarter of 2019.

The discouraged population (5.7 million persons) was a record in the time series, having risen 19.1% (more 913 thousand persons) in relation to the previous quarter and 16.5% (more 806 thousand persons) in relation to the same quarter of 2019.

The percentage of discouraged in relation to the population in the workforce or discouraged (5.6%) was a record, rising 1.2 percentage points both in relation to the previous quarter (4.3%) and in relation to the same quarter of 2019 (4.4%).

The number of persons employed with a formal contract in the private sector (excluding domestic workers) fell to 30.2 million, the lowest level in the time series, 8.9% below the previous quarter (less 2.9 million) and 9.2% (less 3.1 million) below the same quarter of 2019.

The number of persons employed without a formal contract in the private sector (8.6 million persons) also hit its lowest level, dropping 2.4 million persons (-21.6%) against the previous quarter and 2.9 million (-24.9%) against the same period of 2019.

The number of self-employed workers fell to 21.7 million persons, a reduction of 10.3% compared both with the previous quarter and the same period of 2019.

The category of domestic workers (4.7 million persons) hit its lowest level in the time series, with record drops in both comparisons: -21.0% over the previous quarter and -24.6% over the same period of 2019.

The informality rate was 36.9% of the employed population, or 30.8 million informal workers, the lowest level in the time series started in 2016. This rate had been 39.9% in the previous quarter and 41.2% in the same quarter of 2019.

The usual real earnings (R$2,500) rose 4.6% over the previous quarter and 6.9% over the same quarter of 2019. In contrast, the usual real wage bill (R$203.5 billion reais) retreated 5.6% (less R$12.0 billion) in relation to the previous quarter and 4.4% in relation to 2019 (less R$9.4 billion).  

Unemployment rate - Brazil - 2012-2020 (%)
 

The activity groups did not rise in relation to the previous moving quarter. The major reductions were in Housing and food (-25.2%), Domestic services (-21.1%), Construction (-16.6%) and Other services (-16.7%). The other drops came from Trade, repair of motor vehicles and motorcycles (-12.3%), Transportation, storage and mailing (-10.9%), Industry (-9.4%), Information, communication and financial, real estate and administrative activities (-5.3%) and Agriculture, livestock, forestry, fishing and aquaculture (-3.5%). 

They also did not rise against the same quarter of 2019. The following groups recorded a reduction: Agriculture, livestock, forestry, fishing and aquaculture 
(-7.9%), Industry (-10.5%), Construction (-19.4%), Trade, repair of motor vehicles and motorcycles (-13.0%), Transportation, storage and mailing (-10.7%), Housing and food (-26.1%), Information, communication, and financial, real estate and administrative activities (-4.2%), Other services (-17.5%) and Domestic services (-24.7%).

Estimated at 96.1 million persons, the workforce – employed and unemployed persons – dropped 8.5% compared with the previous quarter (less 8.9 million persons) and 9.4% against the same period of 2019 (less 10.0 million persons). Although this contingent was not the smallest one in the time series, both drops are record. 

The number of employers (4.0 million persons) retreated 9.8% (-429 thousand persons) over the previous quarter and 9.5% against the same quarter of 2019 (-414 thousand). 

The group of those employed in the public sector (12.4 million persons), which includes statutory and military workers, increased 6.1% over the previous quarter and 6.0% in relation to the same quarter a year ago.

The number of time-related underemployed persons (5.6 million) retreated 13.2% against the previous quarter and 23.7% against the same period of 2019. 

Composite underutilization rate – quarters from April to June – 2012-2020 - Brazil (%)

Concerning the usual real average earnings, the following categories increased: Industry (6.0%), Construction (6.9%) and Other services (5.6%). Compared with the quarter from April to June 2019, the following categories rose: Industry (10.3%), Trade, repair of motor vehicles and motorcycles (4.8%), Housing and food (8.7%) and Other services (11.2%).

 Among the employment categories, the usual real average earnings of those employed without a formal contract (5.7%) and employers (6.3%) increased over the previous quarter. Compared with the same period of 2019, those employed with a formal contract (3.7%), those employed without a formal contract (10.8%) and also those self-employed (5.6%) increased.

Average monthly real earnings, usually earned in the reference month, from all jobs
of employed persons - Brazil - 2012/2020 (R$